RE: Cuddeback pic quality issue
I had it happen a couple time on the 1.3 I have - but then I had "black" picture problems and sent it in for repairs - and none since.
The 3.0 we have does a really really nice job with color. Maybe you could play with some of the settings - like Long Range Flash - to see if it makes a difference. Are all the pictures coming out like this? If you want, PM me - I might be able to point you to a helpful person.
FH